Q. I-Bond interest used for 529 contribution - Where do I enter in TT?
In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)
- Wages & Income
Scroll down to:
-Interest & Dividends
-Interest on a 1099-INT
Click the box "My form has info in more than just box 1"
The savings bond interest will be in box 3 of the 1099-INT. TT will recognize that as savings bond interest. After going thru the whole interest interview and after the interest summary screen ("here's the interest we have so far"), a follow up screen will ask if you used the money for higher education. Answer yes. You will be asked for the student name (beneficiary of the 529 plan). Check the box that you contributed to a Qualified Tuition Program (QTP/529).
When asked for the education expenses, enter the amount you contributed.
Q. I know where to list the interest, but need to know where to exclude it.
A. TT will enter the excludable amount on line 3 of Schedule B (as a deduction from your reportable interest income). TT will also complete form 8815 to show the calculation of the excludable amount.
